Announcement of the Ministry of Finance of the People's Republic of China, State Grain and Material Reserve Bureau (No. 1, 2020)

In order to optimize the structure of the central reserve cotton, ensure good quality , and strengthen the central reserve's ability to regulate and control, some central reserve cotton will be rotated in 2020. The relevant matters are now announced as follows:

　　First, the round-trip arrangement

　　(1) Time. National legal working days from July 1, 2020 to September 30, 2020.

　　(2) Quantity. The total amount is about 500,000 tons. Balanced delivery will be implemented. In principle, about 8 thousand tons will be listed and sold every working day.

　　(3) Price. The listed sales base price is determined according to the market dynamics. In principle, it is linked to the domestic and foreign cotton spot prices. It is determined by the domestic market cotton spot price index and the international market cotton spot price index at a weight of 50%, and is adjusted once a week. During the round-off period, when the domestic cotton spot price index is less than 11500 yuan/ton, trading will be suspended from the next business day; when the domestic market cotton spot price index exceeds 11500 yuan/ton for three consecutive business days, the next business day Restart the transaction. (Please refer to the attachment for the specific calculation formula)

　　(4) Way. It is sold through public bidding on the national cotton trading market.

　　(5) Notary inspection. The round cotton reserve is organized by the China Fiber Quality Monitoring Center to carry out a comprehensive notary inspection of quality and weight.

　　Second, the round-robin arrangement

　　According to the actual rotation of the reserve cotton and the supply and demand of the cotton market, the relevant state departments choose the opportunity to arrange the rotation, and the specific arrangement will be announced as soon as possible.

　　3. Relevant regulations

　　(1) In order to do a good job in the rotation of the central reserve cotton, China Reserve Grain Management Group Co., Ltd., the National Cotton Trading Market and the China Fiber Quality Monitoring Center will formulate implementation rules for the storage and entry of reserve cotton, bidding transactions, and notarization and inspection, and adopt The respective official website and the website of the National Cotton Exchange Market (www.cnce.cn) are announced to the public.

　　(2) During the rotation of the central reserve cotton, if there are major changes in the cotton market at home and abroad, the National Grain and Material Reserve Bureau will make necessary adjustments to the rotation arrangement with the National Development and Reform Commission and the Ministry of Finance according to market regulation and other needs. Announced.

　　Special announcement.

　　Attachment: The calculation formula for the reserve price of the central reserve cotton wheel sales